Z FIN (01168.HK): Interim Revenue Up 67.9% to HKD 485.7 Million, Loss Attributable to Owners Narrows to HKD 196.1 Million

NewTimeSpace News: On 15 September 2026, Z Fin Limited (stock code: 01168) published its 2026 interim report. For the six months ended 30 June 2026, the Group recorded revenue of HKD 485.7 million, up 67.9% from the same period last year; gross profit of HKD 251.1 million, up 23.6%; and a loss attributable to owners of the Company of HKD 196.1 million, compared with a loss of HKD 507.1 million in the same period last year. Basic loss per share was HKD 0.45, compared with HKD 1.59 last year. The increase in revenue was mainly attributable to the recognition of property sales of approximately HKD 258.7 million for the six months ended 30 June 2026.

The announcement disclosed that, by operating segment, revenue for the period comprised HKD 2.7 million from financing services, HKD 170.6 million from real estate investment (rental income), HKD 50.17 million from property management, HKD 258.7 million from real estate development (property sales) and HKD 3.55 million from other businesses, giving total revenue of HKD 485.7 million, all of which was derived from China. Rental income decreased by 10.5% from the same period last year, mainly due to weak leasing demand and intensified market competition for the Group's commercial property portfolio in Shenzhen as newly completed commercial projects emerged in neighbouring areas, while turnover of other businesses amounted to HKD 53.7 million, down 41.2% from the same period last year. As at 30 June 2026, the occupancy rate of the office portion of Baishida Tower in Shenzhen was approximately 38%, and the occupancy rate of Le Hotel in Shenzhen was approximately 9%.

The substantial narrowing of the loss was mainly because the Group recorded a fair value loss on convertible bonds of approximately HKD 497.9 million for the six months ended 30 June 2025, whereas there was no fair value gain or loss on convertible bonds for the same period in 2026, which was partly offset by an increase in the share of losses of investments accounted for using the equity method from HKD 9 million to HKD 34.2 million. The Group also recorded a fair value loss on investment properties of approximately HKD 163.7 million for the period, compared with a fair value gain of HKD 3.5 million in the same period last year, mainly due to capital depreciation of the commercial property portfolio held for leasing in China, and other net losses of HKD 76.8 million against HKD 3.9 million last year, mainly due to the write-off of rental receivables arising from the initial business combination accounting. Finance costs were HKD 39.2 million, down from HKD 52.9 million in the same period last year, mainly due to the repayment of part of the bank borrowings. As at 30 June 2026, the Group's total borrowings were HKD 2,154.5 million against HKD 2,219.2 million as at 31 December 2025, denominated in RMB and bearing interest at floating rates, and the gearing ratio (total borrowings to total equity) was 20.0% against 19.8% as at 31 December 2025.

On properties, the Group completed the sale of two units of the Locke Bund Origin residential project during the period for approximately HKD 258.7 million, with the related revenue recognised during the period, and as at 30 June 2026 had entered into sale and purchase agreements for a further four units at a total consideration of approximately HKD 521.1 million with deposits of approximately HKD 284.7 million received. For the Ningguo Mansion project, a sale and purchase agreement was entered into for one unit as at 30 June 2026 at a total consideration of approximately HKD 217.4 million with a deposit received. On significant investments, as at 30 June 2026 the Group's equity instruments at fair value through other comprehensive income totalled HKD 789.4 million, including 81,000,000 shares in ZA ONLINE (stock code: 06060), representing approximately 4.95% of its issued shares, with an investment cost of HKD 92 million and a market value of HKD 729 million as at 30 June 2026, on which an unrealised fair value loss of HKD 618.168 million was recognised in other comprehensive income during the period. For the six months ended 30 June 2026, ZA ONLINE recorded total gross written premiums of approximately RMB 16.558 billion, down approximately 0.6% from the same period last year, and net profit attributable to owners of the parent of approximately RMB 1.55 billion against RMB 668 million in the same period last year.

To retain resources for the Group's business development, the Board did not declare an interim dividend for the six months ended 30 June 2026, and none was declared for the same period in 2025. As at 30 June 2026, the Group employed approximately 688 full-time employees. Of the net proceeds of HKD 198.34 million from the convertible bonds, HKD 109.34 million had been utilised as at 30 June 2026, leaving unutilised net proceeds of HKD 89.00 million. From 30 June 2026 up to the date of the interim report, the Group further utilised HKD 10 million of the net proceeds for business development purposes, and the remaining net proceeds are expected to be utilised before December 2026. The Group stated that its strategic focus will remain on expanding its fintech business and that it will continue to implement its sales strategy for selected residential properties in respect of its real estate portfolio.

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